Joe Biden warns Latin America about the Chinese “debt trap”

Before leaders of 11 countries, the president Joe Biden pledged this Friday to promote green bonds and facilitate the investment of billions of dollars in Latin America so that I can “choose” between USA and “the debt trap” China.

The American president welcomed at the White House to the leaders of Chili, Colombia, Costa Rica, Ecuador, Peru, Dominican Republic, Uruguay, Canada and Barbadosand the foreign ministers of Mexico and Panama for the first summit of the Alliance for Economic Prosperity in the Americas (APEP), of which everyone is a part.

“USA It is already, by far, the largest source of investment in Latin America and the Caribbeanand we’re going to make sure our closest neighbors know they have a choice between diplomacy debt trap and transparent, high-quality approaches to infrastructure and development”Biden stated.

USA accuses Chinaan unavoidable trading partner in the region, to use debt to achieve strategic objectives.

To counter Beijing’s growing influence, Biden announced that “the International Development Finance Corporation USA and the Inter-American Development Bank (IDB) launch a new investment platform to allocate billions of dollars to the construction of sustainable infrastructure” in America.

He did not give figures, but the money will go mainly to “strengthen critical supply chains, modern ports, clean energy networks (and) digital infrastructure” why are “the basic components” of “a competitive and resilient economy”, he listed.

Green bonds

The energy transition and the protection of nature are also in the sights of Washington, which is committed to promoting, in collaboration with the IDBa fund with green bondsto invest in environmentally friendly assets environmentand blue bondsspecialized in preserving the oceans and their ecosystems.

During the summit, which will be held every two years, the countries addressed one of the essential issues at the regional level: supply chains, which have suffered serious disruptions due to the COVID-19 pandemic.

In a joint final declaration they recognize that the situation could be repeated, for example, due to the impact of climate change.

That is why they propose to establish the “most competitive, inclusive, sustainable and resilient regional value and supply chains in the world” focusing on three sectors: clean energy, medical supplies and semiconductors.

They also want to create “a regional accelerator for entrepreneurs and programs to foster workforce development, particularly in the digital economy”.

Before the summit there was a working breakfast with the Secretary of the Treasury of USAJanet Yellen.

““None of us has a magic wand to increase productivity and generate good jobs and higher wages.” but the countries of the APEP are “well positioned” to benefit from “friendshoring”“, told them. This term coined by her refers to production and supply in geopolitical allied countries.

Yellen also hopes that the countries of the region will benefit from an eventual increase in the credit capacity of the International Monetary Fund (IMF) if it achieves its goal of raising the member states’ quotas.

Migration

America “can become the most economically competitive region in the world“, he claimed Joe Biden.

But it must overcome challenges such as climate changeincome inequalities and especially illegal migration, a headache for the Democratic leader, whom Republicans accuse of not doing enough to stop it on the border with Mexico.

To achieve this, he advocates addressing the crisis “stabilizing migrant populations“where they are, providing them with legal status and aid and promoting migration”safe and orderly” with programs that allow them to work.

It’s a statement, White House announced that the United States, Canada, South Korea, Spain and the IDB will grant a total of $89 million to a fund of this financial organization to expand infrastructure and social services for migrants in host communities in the region.

The summit ended in “a spirit of openness and inclusion” requesting that entry be promoted into the APEP from other American countries. The next one will be held in 2025 in Costa Rica.

With information from AFP